A higher opening in the domestic equity market and a weak dollar against euro and yen overseas after poor US housing data raised the likelihood that the Federal Reserve would keep its stimulus programme in place for some time, also supported the rupee, forex dealers said.

The rupee had lost 37 paise, its biggest drop in two weeks, to close at 59.72 on Monday following month-end dollar demand from oil importers and some custodian banks coupled with capital outflows.

Meanwhile, the BSE benchmark index Sensex recovered by 173.38 points, or 0.86 per cent, to 20,332.50 in early trade on Tuesday.